Increasing Property Value: How to Boost Your Real Estate's Worth

Why is increasing your property's value so important?

For property owners, boosting their real estate's value brings significant advantages. Renovations, refurbishments, and other improvements to your house or condo not only enhance the living environment but also increase the property's market appeal.

A higher property value typically leads to a better selling price and shorter time on the market. Buyers are more willing to pay a premium for a well-maintained and modernized property. Moreover, banks find it easier to finance such properties, which expands the pool of potential buyers.

What factors influence your property's value and appreciation?

Numerous factors determine a property's value and potential appreciation. These include location, size, condition, and age of the property, as well as current market trends and economic conditions. Some of these factors, such as location or the year your house, land, or condo was built, are beyond your control.

However, you have the opportunity to increase your property's value through targeted measures. These include improvements to the amenities, such as a high-quality fitted kitchen, modern bathrooms, or a beautiful wellness area. The structural condition and energy efficiency of the property also offer potential for value increase. Real estate buyers are particularly interested in energy-efficient properties as they come with lower ongoing costs. This way, you can directly influence supply and demand and promote your property's value appreciation.

Which renovations or refurbishments are suitable for increasing property value?

Not every measure leads to the same increase in property value. While minor cosmetic improvements can already have positive effects, other properties may require more extensive renovations.

For luxury properties, high investments in amenities might be worthwhile to achieve substantial value appreciation, while different priorities may need to be set for country houses or condos in older buildings. The key is to invest in areas that bring the greatest value increase for the respective property in relation to the costs. Some of the most effective measures for property appreciation include:

• Kitchen modernization: A modern, well-equipped kitchen can bring an interesting value increase to your property. High-quality countertops, energy-efficient appliances, and appealing lighting are important elements. The investment for a new kitchen can start at $5,000 and can be significantly higher depending on the equipment. Just before selling, modernizing the existing kitchen is often more worthwhile, as the value increase for the property is about 5%.

• Bathroom renovation: A modernized bathroom, equipped with high-quality fixtures, tiles, and a walk-in shower, can increase property value by about 10 to 20%. The costs for a comprehensive bathroom renovation range between $10,000 and $20,000. Sometimes, new bathtubs or modern tiles are sufficient for a value increase.

• Cosmetic renovations: Freshly painted walls, new flooring, and modern lighting enhance your property's attractiveness with relatively little effort. These measures can shorten the selling time and achieve a value increase of about 5 to 10%. Even if painting and new flooring cost several hundred to thousands of dollars, they often pay off through the value appreciation. DIY efforts can further improve the gain.

• Attic or basement conversion: Converting unused spaces creates additional living space and increases the property's value. Conversion or expansion is particularly worthwhile in areas with housing shortages. The value increase and costs depend on the individual property.

• Exterior redesign: A well-maintained entrance area, a beautiful garden, or a freshly painted facade can enhance your property's attractiveness and result in about a 5% value increase. A neat, clean, and inviting presentation of the property is also conducive to sales, although it doesn't constitute an actual value increase.

• Energy-efficient renovations: Measures such as replacing heating systems, windows, or adding insulation improve energy efficiency and can realize a property value increase of 5 to 25%. The costs for a new heating system range from about $10,000 to $30,000 depending on the model. New windows in standard sizes are available for self-installation from around $300. If you hire a professional, expect $300 to $400 per square meter for the windows plus labor costs.

Property Value Increase: Costs and Benefits of Renovations

When renovating, it's crucial to carefully examine the ratio of costs to potential value appreciation. While simple measures like painting walls or the facade immediately beautify the appearance, the financial benefits of more extensive renovations vary. For properties in remote areas, energy-efficient renovation can bring value appreciation. However, the effect on value increase is lower than for comparable properties in urban areas, although the renovation costs are similar.

The costs for renovations to increase property value, such as kitchen modernization, bathroom renovation, or energy improvements, typically range between $5,000 and $50,000, depending on the scope and quality of the work.

In contrast, the property value increase is usually between 15% and 20%, depending on the measure. Energy-efficient renovations are particularly in demand and can achieve a value increase of up to 25%, as potential buyers prefer energy-saving properties. The investments are especially worthwhile if government funding programs cover a large part of the costs. DIY efforts reduce expenses and thus lead to a higher property value increase.

Property Appreciation with the Right Strategy

Increasing the value of your house or condo requires careful planning and targeted measures. Whether renovations, modernizations, or beautifying the exterior - with the right investments, you can significantly improve your property's value appreciation. The basis for the appropriate strategy to increase your property's value is a comprehensive real estate appraisal.

The real estate agents at Engel & Völkers are happy to support you with their expertise and experience in property valuation and strategies for increasing your property's value. Sell your condo, house, or land successfully, quickly, and at an optimized selling price with Engel & Völkers. Contact us now for a non-binding consultation and free property valuation by our experienced real estate professionals.